{"id":1203,"date":"2023-10-19T07:26:54","date_gmt":"2023-10-19T07:26:54","guid":{"rendered":"https:\/\/260web.com\/news\/nokia-to-axe-up-to-14000-jobs-to-cut-costs\/"},"modified":"2023-10-19T07:26:54","modified_gmt":"2023-10-19T07:26:54","slug":"nokia-to-axe-up-to-14000-jobs-to-cut-costs","status":"publish","type":"post","link":"https:\/\/260web.com\/news\/nokia-to-axe-up-to-14000-jobs-to-cut-costs\/","title":{"rendered":"Nokia to axe up to 14,000 jobs to cut costs"},"content":{"rendered":"

Nokia to axe up to 14,000 jobs to cut costs<\/p>\n

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\"Nokia<\/picture><\/span>Getty Images<\/span><\/div>\n<\/figure>\n<\/div>\n
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By Mariko Oi & Tom Espiner<\/div>\n
BBC News <\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Finnish telecoms giant Nokia is to axe between 9,000 and 14,000 jobs by the end of 2026 to cut costs.<\/b><\/p>\n<\/div>\n<\/div>\n

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The announcement was made as the company reported a 20% drop in sales between July and September. <\/p>\n<\/div>\n<\/div>\n

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The company blamed slowing demand for 5G equipment in markets such as North America.<\/p>\n<\/div>\n<\/div>\n

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It currently has 86,000 employees around the world, and has axed thousands of jobs since 2015.<\/p>\n<\/div>\n<\/div>\n

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Nokia wants to cut costs by between \u20ac800m and \u20ac1.2bn (\u00a3695m-\u00a31bn) by 2026, it said.<\/p>\n<\/div>\n<\/div>\n

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Advances in cloud computing and AI will need “significant investments in networks that have vastly improved capabilities”, said chief executive Pekka Lundmark.<\/p>\n<\/div>\n<\/div>\n

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“However, given the uncertain timing of the market recovery, we are now taking decisive action,” he said.<\/p>\n<\/div>\n<\/div>\n

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It said it wanted to “act quickly” by cutting costs by \u20ac400m in 2024, and \u20ac300m in 2025.<\/p>\n<\/div>\n<\/div>\n

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Mr Lundmark added that despite “ongoing uncertainty”, Nokia expected to “an improvement in our network businesses” in the current quarter.<\/p>\n<\/div>\n<\/div>\n

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Stalling 5G<\/span><\/h2>\n<\/div>\n
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Nokia was once the biggest handset manufacturer in the world, but it failed to anticipate the popularity of internet-enabled touchscreen phones such as Apple’s iPhone and Samsung’s Galaxy and was knocked from its perch by rivals.<\/p>\n<\/div>\n<\/div>\n

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After selling its handset business to Microsoft, which the software giant later wrote off, Nokia concentrated on telecoms equipment.<\/p>\n<\/div>\n<\/div>\n

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In 2020, Nokia became a major beneficiary of Huawei being blocked from the UK’s 5G networks after striking a deal to become the largest equipment provider to BT.<\/p>\n<\/div>\n<\/div>\n

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But 5G equipment makers have been struggling as operators in the US and the EU cut spending.<\/p>\n<\/div>\n<\/div>\n

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Nokia and Swedish rival, Ericsson, have been trying to offset some of the weakness with higher sales to India, but 5G rollout has also been slowing down there.<\/p>\n<\/div>\n<\/div>\n

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Earlier this week Ericsson reported a fall in sales.<\/p>\n<\/div>\n<\/div>\n

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The firm has also laid off thousands of employees this year, and said on Tuesday the uncertainty affecting its business would persist into 2024.<\/p>\n<\/div>\n<\/div>\n

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Related Topics<\/h2>\n<\/div>\n
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